Common use of Default by Banks Clause in Contracts

Default by Banks. (a) If any Bank (a "Defaulting Bank") fails to make any payment due from it for the account of the Issuing Bank under Clause 6.3 (Payment by the Banks), then until the Issuing Bank has been reimbursed in respect thereof in full (but without prejudice to the obligations of that Defaulting Bank to make such payment): (i) the Defaulting Bank shall hold on trust for the Issuing Bank the benefit of any security now or hereafter created to secure the obligations of the Borrowers under this Agreement and to which that Defaulting Bank would have been entitled had it made such payment; and (ii) for the purposes of determining the constitution of the Majority Banks: (A) the Issuing Bank shall be treated as having a Facility A Commitment equal to that of the Defaulting Bank (in addition to the Facility A Commitment (if any) which the Issuing Bank already had in its capacity as a Bank); and (B) that Defaulting Bank shall be treated, for such purpose only, as having no Facility A Commitment. (b) The rights conferred upon the Issuing Bank in this Clause 6.4 are in addition to any other rights which it may have against a Defaulting Bank.

Default by Banks. (a) in payment to Swingline Bank 6.13.1 If any Bank (a an "L/C Defaulting Bank") fails to make any payment due from it for the account of the Issuing Swingline Bank under Clause 6.3 (Payment by the Banks), clause 6.12 then until the Issuing Swingline Bank has been reimbursed in respect thereof in full (but without prejudice to the obligations of that L/C Defaulting Bank to make such payment): (ia) the L/C Defaulting Bank shall hold on trust for the Issuing Swingline Bank the benefit of any security now or hereafter created to secure the obligations of the Borrowers Swingline Borrower under this Agreement and to which that L/C Defaulting Bank would have been entitled had it made such payment; and and (iib) for the purposes of determining the constitution of the Majority Banks: : (Ai) the Issuing Swingline Bank shall be treated as having a Facility A Contribution or Commitment (as the case may be) equal to that the amount of such non-payment of the L/C Defaulting Bank (in addition to the Facility A Commitment or Contribution (if any) which the Issuing Swingline Bank already had in its capacity as a Bank); and and (Bii) that the Commitment or Contribution (as the case may be) of the L/C Defaulting Bank shall be treated, for such purpose only, treated as having no Facility A Commitmentbeen reduced to the same extent. (b) 6.13.2 The rights conferred upon the Issuing Swingline Bank in this Clause 6.4 clause 6.13 are in addition to any other rights which it may have against a an L/C Defaulting Bank.

Default by Banks. in payment to Swingline Bank (a) If any Bank (a an "L/C Defaulting Bank") fails to make any payment due from it for the account of the Issuing Swingline Bank under Clause 6.3 (Payment by the Banks), clause 6.12 then until the Issuing Swingline Bank has been reimbursed in respect thereof in full (but without prejudice to the obligations of that L/C Defaulting Bank to make such payment): (i) the L/C Defaulting Bank shall hold on trust for the Issuing Swingline Bank the benefit of any security now or hereafter created to secure the obligations of the Borrowers Swingline Borrower under this Agreement and to which that L/C Defaulting Bank would have been entitled had it made such payment; and and (ii) for the purposes of determining the constitution of the Majority Banks: : (A) the Issuing Swingline Bank shall be treated as having a Facility A Contribution or Commitment (as the case may be) equal to that the amount of such non-payment of the L/C Defaulting Bank (in addition to the Facility A Commitment or Contribution (if any) which the Issuing Swingline Bank already had in its capacity as a Bank); and and (B) that the Commitment or Contribution (as the case may be) of the L/C Defaulting Bank shall be treated, for such purpose only, treated as having no Facility A Commitmentbeen reduced to the same extent. (b) The rights conferred upon the Issuing Swingline Bank in this Clause 6.4 clause 6.13 are in addition to any other rights which it may have against a an L/C Defaulting Bank.